Updated thoughts on Iron Ore i.e. RIO,BHP & FMG

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 20/01/2024

Updated thoughts on Iron Ore i.e. RIO,BHP & FMG

Hi James and Team Can I have your current view on Iron Ore. It has fallen back since early Jan when the likes of RIO, FMG and BHP reached all time highs. I know a lot of this is determined by China. However do you feel leading into Feb and their dividends they will rally back to all time highs? regards Deb

Answer

Hi Deb,

We do believe these three major iron ore miners will move largely as one although the greater diversification of BHP makes it less twitchy to the swings in the underlying iron ore price.

FMG has performed strongly since its late 2022 low and we can still see fresh highs above $30 over the coming weeks/months.
BHP continues to rotate between $40 and $50, MM is considering tweaking our positions accordingly at these extremes.
RIO has managed to outperform its peers over recent weeks, but we remain neutral, preferring BHP.

chart

Fortescue Ltd (FMG)

LAST UPDATED 19/01/2024 14:25

Latest Reports

Weekend report 27/04/2024

Weekend Q&A: Strong inflation crushes hopes of a rate cut in 2024

Afternoon report 26/04/2024

The Match Out: ASX (nearly) gives up week’s gain in tough Friday session

The local market dropped ~100 points on the open, failing to see any reprieve following two weaker sessions out in the US since our close on Wednesday. After dropping back below 7600 the index traded in a reasonably tight 30-point range for the rest of the session, failing to join in on the rally across the region and what’s showing on the US Futures ahead of their Friday session. BHP managed to take 31pts off the market alone today, weakness coming after they lobbed an all scrip bid for Anglo American (AAL LN). Despite the soggy end to the week, the ASX200 finished marginally higher, +8pts / +0.11%.